PROVIDENCE – Providence Water Supply Board customers will see their bills go up 4.3% starting July 1, marking the second year of a three-year series of rate hikes, under documents submitted to the R.I. Public Utilities Commission on Wednesday.
The rate hikes include increases for residential, commercial and industrial customers of the municipal water system as well as to the other cities and towns it supplies water to at wholesale rates. Under the new rates, an average residential customer in Providence, using 74,800 gallons of water, would see a $1.76 monthly bill increase to $42.27. There is also a higher service charge for Providence residents for fire protection services, with rates dependent upon the size of the meter.
Building a Strong Data Foundation in the Age of AI
Artificial intelligence (AI) has become a key priority in the boardroom and across management —…
Learn More
The increases are part of a 2020 plan calling for incremental rate hikes to generate more revenue amid declining water consumption and increased expenses from union workers salaries. Inability to charge interest on unpaid balances has also cut cash flow, which came in $6.7 million less than expected for the fiscal year that ended June 30, according to Providence Water’s filings with the PUC.
Providence Water initially proposed higher rate increases that would have generated an extra $4.3 million in revenue for a total fiscal year budget of $89.3 million. However, the rates were modified after the commission in two separate votes on Tuesday shaved off about $950,000 of that spending, a majority of which was cut from the supply board’s personnel budget.
The water board has 22 positions it’s looking to fill, and said in filings that hiring has been particularly challenging post-pandemic. However, commissioners in their discussion Tuesday noted that vacancies were also a problem last year, and that Providence Water continues to find employees to fill these jobs, it will not need as much money for personnel.
Last year’s rate increases hiked residential customers’ bills by 18%, which in combination with commercial, industrial and wholesale increases was projected to bring in an extra $13 million for Providence Water. A third round of rate hikes is expected next year, though it could be modified from the original proposal.
Providence Water supplies water to roughly 60% of the state, selling wholesale to seven municipal water authorities across the state: Bristol County, East Providence, Greenville, Kent County, Lincoln, Smithfield and Warwick. As set by the commission last year, the rates charged to each municipal buyer are determined individually based upon their peaking factors – a measurement which estimates system capacity based on the maximum water flow compared to the average daily flow.
Nancy Lavin is a PBN staff writer. You may reach her at LAvin@PBN.com.
